Debt

A summary of the Company’s consolidated indebtedness is as follows (dollars in thousands):



	Interest Rate		Maturity Date at March 31, 2017	Carrying Value
	March 31, 2017	December 31, 2016	Maturity Date at March 31, 2017	March 31, 2017			December 31, 2016
Mortgages Payable
Core Fixed Rate	3.88%-6.65%	3.88%-6.65%	August 2017 - April 2035	$	234,273		$	234,875
Core Variable Rate - Swapped^(a)	1.71%-3.77%	1.71%-3.77%	September 2022 - June 2026	81,663			82,250
Total Core Mortgages Payable				315,936			317,125
Fund II Fixed Rate	1.00%-5.80%	1.00%-5.80%	October 2017 - May 2020	249,762			249,762
Fund II Variable Rate	LIBOR+0.79% -LIBOR+2.50%	LIBOR+0.62% -LIBOR+2.50%	August 2017 - November 2021	142,750			142,750
Fund II Variable Rate - Swapped^(a)	2.88%	2.88%	November 2021	19,726			19,779
Total Fund II Mortgages Payable				412,238			412,291
Fund III Variable Rate	Prime+0.50% -LIBOR+4.65%	Prime+0.50% -LIBOR+4.65%	May 2017 - December 2021	79,680			83,467
Fund IV Fixed Rate	3.4%-4.50%	3.4%-4.50%	October 2025-June 2026	10,504			10,503
Fund IV Variable Rate	LIBOR+1.70% -LIBOR+3.95%	LIBOR+1.70% - LIBOR+3.95%	May 2017 - April 2022	258,816			233,139
Fund IV Variable Rate - Swapped^(a)	1.78%	1.78%	April 2022	81,668			14,509
Total Fund IV Mortgages Payable				350,988			258,151
Net unamortized debt issuance costs				(16,951		)	(16,642		)
Unamortized premium				1,158			1,336
Total Mortgages Payable				$	1,143,049		$	1,055,728
Unsecured Notes Payable
Core Unsecured Term Loans	LIBOR+1.30% -LIBOR+1.60%	LIBOR+1.30% -LIBOR+1.60%	July 2020 - December 2022	$	51,283		$	51,194
Core Variable Rate Unsecured Term Loans - Swapped^(a)	1.24%-3.77%	1.24%-3.77%	July 2018 - March 2025	248,717			248,806
Total Core Unsecured Notes Payable				300,000			300,000
Fund IV Term Loan/Subscription Facility	LIBOR+1.65% -LIBOR+2.75%	LIBOR+1.65% -LIBOR+2.75%	February 2017- November 2017	60,536			134,636
Net unamortized debt issuance costs				(1,689		)	(1,646		)
Total Unsecured Notes Payable				$	358,847		$	432,990
Unsecured Line of Credit
Core Unsecured Line of Credit	LIBOR+1.40%	LIBOR+1.40%	June 2020	$	—		$	—
Total Unsecured Line of Credit				$	—		$	—

Total Debt - Fixed Rate ^(b)				$	926,314		$	860,486
Total Debt - Variable Rate				593,064			645,185
Total Debt				1,519,378			1,505,671
Net unamortized debt issuance costs				(18,640		)	(18,289		)
Unamortized premium				1,158			1,336
Total Indebtedness				$	1,501,896		$	1,488,718

__________


(a)	At March 31, 2017, the stated rates ranged from LIBOR + 1.08% to LIBOR +1.90% for Core variable-rate debt; LIBOR + .79% to LIBOR +2.50% for Fund II variable-rate debt; PRIME + 0.50% to LIBOR +4.65% for Fund III variable-rate debt; LIBOR + 1.70% to LIBOR +3.95% for Fund IV variable-rate debt and LIBOR + 1.30% to LIBOR +1.60% for Core variable-rate unsecured notes.


(b)	Includes $431,774 and $365,343, respectively, of variable-rate debt that has been fixed with interest rate swap agreements as of the periods presented.

Mortgages Payable

During 2017, the Company obtained eight new non-recourse mortgages totaling $93.0 million with a weighted-average interest rate of 2.68% collateralized by eight properties, which mature between February 14, 2020 and April 1, 2022. The Company entered into interest rate swap contracts to effectively fix the interest rates of seven of these obligations with a notional value of $67.3 million at a weighted-average rate of 1.92%. During 2017, the Company repaid one mortgage in full, which had a balance of $3.5 million and an interest rate of LIBOR + 2.15%, and made scheduled principal payments of $1.9 million. At March 31, 2017 and December 31, 2016, the Company’s mortgages were collateralized by 47 and 39 properties, respectively, and the related tenant leases. Certain loans are cross-collateralized and contain cross-default provisions. The loan agreements contain customary representations, covenants and events of default. Certain loan agreements require the Company to comply with affirmative and negative covenants, including the maintenance of debt service coverage and leverage ratios. A portion of the Company’s variable-rate mortgage debt has been effectively fixed through certain cash flow hedge transactions (Note 8).

The mortgage loan related to Brandywine Holdings in our Core Portfolio amounted to $26.3 million and was in default at March 31, 2017 and December 31, 2016. This loan bears interest at 5.99%, excluding default interest of 5%, and is collateralized by a property, in which the Company holds a 22% controlling interest. In April 2017, the lender on this mortgage initiated a lawsuit against the Company for the full balance of the principal, accrued interest as well as penalties and fees aggregating approximately $31.0 million. The Company’s management believes that the mortgage is not recourse to the Company and that the suit is without merit.

In addition, at March 31, 2017, a mortgage loan in the amount of $14.3 million and collateralized by a Fund II property, was in default because its liquidity covenant had been breached.

Unsecured Notes Payable

At each of March 31, 2017 and December 31, 2016, the Company had a total of $0.0 and $9.9 million available under its unsecured term loans. A portion of the Company’s variable-rate term loan debt has been effectively fixed through certain cash flow hedge transactions (Note 8).

The Company completed the following transactions related to its unsecured notes payable during the three months ended March 31, 2017:

•

The Company reduced its maximum commitment available on the Fund IV subscription line of credit from $100.0 million to $21.5 million. Furthermore, upon repayment of $74.1 million, net of $10.0 million in draws, the Company was in compliance with its liquidity covenant at March 31, 2017 which was not in compliance at December 31, 2016. The balance was $20.4 million at March 31, 2017 and $94.5 million at December 31, 2016. Total available credit at March 31, 2017 and December 31, 2016 was $1.1 million and $55.5 million respectively on this line.

Unsecured Lines of Credit

At March 31, 2017 and December 31, 2016 the Company had a total of $150.0 million and $147.5 million, respectively available under its unsecured line of credit.

The Company completed the following transactions related to its unsecured line of credit during the three months ended March 31, 2017:


•	The Company drew down and repaid $10.0 million on the Core unsecured line of credit. There was no outstanding balance as of March 31, 2017.

Scheduled Debt Principal Payments

The scheduled principal repayments of the Company’s consolidated indebtedness, as of March 31, 2017 are as follows (in thousands):



Year Ending December 31,
2017 (Remainder)	$	273,916
2018	115,846
2019	206,646
2020	369,107
2021	255,074
Thereafter	298,789
	1,519,378
Unamortized fair market value of assumed debt	1,158
Net unamortized debt issuance costs	(18,640		)
Total indebtedness	$	1,501,896

See Note 4 for information about liabilities of the Company’s unconsolidated affiliates.